Arun Kumar, an IT professional, wanted to invest in land, with the plan to build a house where he and his wife could retire post his retirement.
He got in touch with several agents who dealt directly with township or land developers.“An over enthusiastic sales person kept calling me, asking for a site visit. When I agreed, he fixed the time of the visit and coerced me to adjust my plans to suit his requirement. He also stressed I take my cheque book so I do not miss out on the attractive offer `at site’,” says Kumar. “At the site, I was surprised to find a crowd of prospective buyers. Coffee and snacks were being served, all very classy and seemingly above board. The only reason I didn’t sign the booking amount that day was because the price being quoted was 50 per cent more as compared to the neighbouring projects.”
This was two years back. Today, those who signed the booking amount have not been able to track the company or the developer.
“In the last few years, Chennai has witnessed the presence of several dubious developers and marketing agents in the real estate segment,” says Nagabhushana Reddy, a property consultant. “Buyers need to be aware of their pressure tactics to avoid getting scammed.”
Con indicators
So, what are the indications one should watch out for so as to avoid being taken for a ride?
- The first indicator is in case the sales person freezes on a time and date and refuses to take you for a site visit at your convenience.
- You are asked to bring along your cheque book so that you can avail a discount that is given `only on that day’.“Real estate deals take time. Reliable developers do not give one-day discounts as they know that when the buyer decides to buy, a deal can be struck then,” says RoyD’Silva, independent advocate and practitioner, specialising in issues related to property transactions..
- Property prices in the neighbouring projects are way below the identified project, even though they target the same economic segment.“This is a clear indicator,” says Reddy. “No matter how many more amenities the developer promises, the price of the same-segment projects cannot vary beyond 20 per cent of the total quoted price.”
“There really is no substitute for checking out the record of ownership at the local registrar’s office,” says D’Silva. “This is a must in any land dealing. Also, checking out the originals of the sale deed and cross checking with the first owner are good options.”
Kanchana Dwarakanath Magicbricks Times of India Chennai